opted literally, but hoping that
the best method may be arrived at to secure such an elasticity of the
currency as will keep employed all the industries of the country and
prevent such an inflation as will put off indefinitely the resumption
of specie payments, an object so devoutly to be wished for by all,
and by none more earnestly than the class of people most directly
interested--those who "earn their bread by the sweat of their brow."
The decisions of Congress on this subject will have the hearty support
of the Executive.

In previous messages I have called attention to the decline in American
shipbuilding and recommended such legislation as would secure to us our
proportion of the carrying trade. Stimulated by high rates and abundance
of freight, the progress for the last year in shipbuilding has been very
satisfactory. There has been an increase of about 3 per cent in the
amount transported in American vessels over the amount of last year.
With the reduced cost of material which has taken place, it may
reasonably be hoped that this progress will be maintained, and even
increased. However, as we pay about $80,000,000 per annum to foreign
vessels for the transportation to a market of our surplus products, thus
increasing the balance of trade against us to this amount, the subject
is one worthy of your serious consideration.

"Cheap transportation" is a subject that has attracted the attention of
both producers and consumers for the past few years, and has contributed
to, if it has not been the direct cause of, the recent panic and
stringency.

As Congress, at its last session, appointed a special committee to
investigate this whole subject during the vacation and report at this
session, I have nothing to recommend until their report is read.

There is one work, however, of a national character, in which the
greater portion of the East and the West, the North and the South, are
equally interested, to which I will invite your attention.

The State of New York has a canal connecting Lake Erie with tide water
on the Hudson River. The State of Illinois has a similar work connecting
Lake Michigan with navigable water on the Illinois River, thus making
water communication inland between the East and the West and South.
These great artificial water courses are the property of the States
through which they pass, and pay toll to those States. Would it not be
wise statesmanship to pledge these States that if they will op